Fairpoint Products Provided the Following Selected Information About Its Consumer $$\begin{array} { l c c } \text { Desired ROI } & 8 \% \\\text { Net Income } & \$100,000 \\\text { Residual Income } & \$ 60,000\end{array}$$

question 94

Multiple Choice

Fairpoint Products provided the following selected information about its consumer products division for the current year: $$\begin{array} { l c c } \text { Desired ROI } & 8 \% \\\text { Net Income } & \$100,000 \\\text { Residual Income } & \$ 60,000\end{array}$$ Based on this information,the division's investment amount was:

• A) $500,000.
• B) $1,250,000.
• C) $750,000.
• D) $2,000,000.

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Definitions:

Unpaid Contributions

Amounts due to a fund or organization, such as a pension or insurance plan, that have not been paid by the deadline.

Long Service Leave

An employee benefit that grants extended paid leave for workers who have been with their employer for a long period.

Nominal Value

The face value of a bond or stock, which is the amount paid at maturity, not necessarily its current market value.

Inflation Rate

The rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling.